Bank of England Allowed 'Crazy Borrowing'

Wednesday, December 24, 2008 | 04:29 PM
in Credit

"We need to develop some new instruments, which sit somewhere between interest rates, which affect the whole economy... and individual supervision and regulation of individual banks. We need to develop something which bridges that gap and directly addresses the financial cycle and prevents the financial cycle and the credit cycle getting out of hand."

-Sir John Gieve


This appears to be a theme:

The Bank of England was warned that "crazy borrowing" was taking place during the boom years -- but did nothing about it. Partly due to politicas, partly due to their failure to understand the severity of the problem. They did not understand how much the banks had abdicated lending standards, and how that led to a financial crisis.

continued here

Wednesday, December 24, 2008 | 04:29 PM | Permalink add to | digg digg this! | technorati add to technorati | email email this post


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